Replacement in trouble

He defined a south London property as his second home when claiming parliamentary expenses. But when it came to paying tax he said it was his main residence.

He has admitted using a legal loophole to avoid paying Capital Gains Tax (CGT) on the sale of the property for £300,000 in 2007.

Between 2005 and 2007, Alexander claimed more than £37,000 in expenses for the flat.

The government is currently arguing over whether to put up the tax rate for owners of second homes in the budget.

Alexander’s arrangements are similar to disgraced former Labour minister Hazel Blears, who was forced to repay money after avoiding payment of CGT.

Alexander’s claims included up to £550 a month to pay the interest on his property’s mortgage.

Lib Dem leader Nick Clegg said last year, “There are MPs who flipped one property to the next, buying property, paid by you, the taxpayer, and then they would do the properties up, paid for by you, and pocket the difference in personal profit.”